No doubt to the great relief of U.S. Federal Reserve officials, we learned yesterday that inflationary pressures had made their way into the manufacturing sector, which climbed 0.4% in November. Considering that it is only a question of time before this trend makes its way to consumers, we can now anticipate that other key rate increases will be on the menu in the United States in 2018.
At 8:30 this morning, we’ll get a chance to examine changes in the basket of consumer goods via the CPI. Also on the agenda today at 2 p.m., Janet Yellen will announce the final rate decision of her term as Fed chair, which should be a final tightening for the year.
In the meantime, concerns related to the closure of the Forties Pipeline proved short-lived, as the price of crude oil (WTI) yesterday gave up all its gains from the morning and more, closing down 3% from its high. This performance was also certainly a factor in the somewhat limited dip seen in the loonie yesterday.
Stéphane Goulet
Range of the day: 1.2780 – 1.2930